Tracksaws, Inc Formulation:
Let X = Number of Tractors Produced Per Period

question 39

Essay

Tracksaws, Inc. makes tractors and lawn mowers. The firm makes a profit of $30 on each tractor and $30 on each lawn mower, and they sell all they can produce. The time requirements in the machine shop, fabrication, and tractor assembly are given in the table.
$$\begin{array} { l l l l } & \text { Machine Shop } & \text { Fabrication } & \text { Assembly } \\\hline \text { Tractor } & 2 \text { hours } & 2 \text { hours } & 1 \text { hour } \\\text { Lawn Mower } & 1 \text { hour } & 3 \text { hours } & 0 \text { hour } \\\text { Hrs. Available } & 60 \text { hours } & 120 \text { hours } & 45 \text { hours } \\\hline\end{array}$$ Formulation:
Let x = number of tractors produced per period
y = number of lawn mowers produced per period


$\begin{array} { l } \text { MAX 30x+30y } \\\qquad\text { subject to } 2 x + y \quad \leq 60 \\\qquad 2 x + 3 y \quad \leq 120 \\\qquad x \leq 45\end{array}$

The graphical solution is shown below.

-A breakdown in fabrication causes the available hours to drop from 120 to 90 hours. How will this impact the optimal number of tractors and mowers produced?

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Definitions:

Allowance Method

An accounting technique used to estimate and account for doubtful debts, providing a more accurate representation of financial health.

Bad Debts Expense

Bad debts expense represents the portion of receivables that a company estimates it will not be able to collect.

Allowance for Doubtful Accounts

An accounting provision made by companies to account for potential future bad debts, reflecting credit sales that might not be collected.

Write Off

The accounting action of declaring that an asset is no longer useful and recording its depreciation in the financial statements.